Affordable Housing Market Stats-List to Sale Price Ratio and Days on Market
Below are my two final graphs that look at sales statistics for affordable homes over the last three years. Check out my two previous posts to learn about the price, home types and areas I included in the search.
The list to sale price ratio is derived by dividing the final list price by what the home actually sold for, i.e. if a home's list price was $100,000, and then it actually sold for $96,800, then its ratio is 96.8%. As you can see from the graph, homes are being discounted at an average that's slightly higher than 3% in most of 2009, which is much different than in 2007 where homes sold within 1 to 1 1/2% of list price. This simply means that sellers are more willing to discount under pressure from buyers. Even though the discounting is increasing, it's still very limited compared to other locations and product segments.
Average days on market is simply a measure of time from when a house is listed on the MLS until it's sold. Overall, the trends have been pretty consistent, more days on market over the winter, shorter sales times in the summer. 2009 has tracked pretty close to the other 2 years with the exception of the third quarter. The next couple of months will tell us if that's just a temporary increase, or if the market for affordable homes is getting softer.
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